mortgage relief presentation to larma conference october 2013 housing programs
TRANSCRIPT
Mortgage Relief
Presentation to LARMA Conference
October 2013
Housing Programs
Department of Housing and Public Works Mortgage Relief
Presentation Overview
1. What current research is telling us
2. The Department of Housing & Public Works Mortgage Relief Loan
3. How Local Government Authorities can use referrals for rate-payers with rate arrears
Department of Housing and Public Works Mortgage Relief
Research findings
• Path from home purchaser to outright home owner is not guaranteed
• People are falling out of home ownership• Divorce and separation are major drivers of
housing transitions• Housing stress can be temporary or long term• An unexpected event can impact on
sustainability of home purchase
Department of Housing and Public Works Mortgage Relief
Mortgage Hardship
• Commonly the result of:
– Illness or injury
– Unemployment
– Decreased income or earning potential
– Maternity leave
– Relationship breakdown
– Financial over-commitment
Department of Housing and Public Works Mortgage Relief
Arrears and repossessions
• Negative impact on personal wellbeing• Increased health problems• Increased instances of mental health• Decrease in social status and identity• Increased problems in personal lives• Damaged future hopes and aspirations• Financial hardship outcomes• And potentially…a pathway to poverty,
particularly for women.
Department of Housing and Public Works Mortgage Relief
Households most at risk
• First home buyers
• People experiencing relationship breakdowns
• Unemployed or reduced income
• People experiencing illness or injury
• People financially over-committed
Department of Housing and Public Works Mortgage Relief
Mortgage Relief Loan
• Loan up to $20,000
• No interest
• No application or ongoing fees
• No repayments for first 12 months
• Loan repaid over 10 years (or on sale).
Department of Housing and Public Works Mortgage Relief
Mortgage Relief Loan
• Short-term need
• Loan funds can be used for:
• Mortgage arrears
• Subsidising mortgage repayments
• Local government rates arrears
Department of Housing and Public Works Mortgage Relief
Eligibility Criteria
• Australian citizen or permanent resident
• Living in Queensland
• Owner-occupier
• All parties to property must be applicants
• Cannot own other real estate
• Sufficient equity to provide security
• Value of mortgage under $500,000
Department of Housing and Public Works Mortgage Relief
Eligibility Criteria
• Must be in financial stress
– Paying more than 30% of income on mortgage repayments
• Must give written authorisation for their home lender and local government authority to disclose information
Department of Housing and Public Works Mortgage Relief
Local government rates arrears
• Refer arrears clients to department
• Provide Mortgage Relief Fact Sheet
• Rates arrears may be an indicator of broader financial problems
• Other referral options:
• Financial counsellors eg. Lifeline
• Legal Aid (Qld)
Department of Housing and Public Works Mortgage Relief
Contacts
• Loan enquiries and applications
Loan information hotline 1300 654 322
Brisbane (07) 3224 7202
• Mortgage Relief factsheets
Download from hpw.qld.gov.au or
google ‘mortgage relief queensland’
Department of Housing and Public Works Mortgage Relief
Questions?